Document background
The Agreement of Understanding is a versatile document used in Swiss business and legal practice when parties wish to formalize their mutual understanding and intentions without immediately creating binding contractual obligations. It serves as a stepping stone toward more formal arrangements, particularly useful in complex negotiations, international relationships, or situations requiring careful relationship building. While governed by Swiss law, particularly the principles found in the Code of Obligations and Civil Code, this document type maintains flexibility while providing a clear framework for cooperation. It typically includes sections outlining the scope of potential collaboration, general principles of cooperation, and any specific areas of mutual interest, while clearly stating its non-binding nature (unless specific provisions are intentionally made binding).
